98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1590

 

Introduced 2/13/2013, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3855/1-92

    Amends the Illinois Power Agency Act. Makes a technical change in a Section relating to power aggregation.


LRB098 09385 JLS 39526 b

 

 

A BILL FOR

 

SB1590LRB098 09385 JLS 39526 b

1    AN ACT concerning energy.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Power Agency Act is amended by
5changing Section 1-92 as follows:
 
6    (20 ILCS 3855/1-92)
7    Sec. 1-92. Aggregation of electrical load by
8municipalities, townships, and counties.
9    (a) The corporate authorities of a municipality, a township
10board, or a county board of a county may adopt an ordinance
11under which it may aggregate in accordance with this Section
12residential and small commercial retail electrical loads
13located, respectively, within the municipality, the township,
14or the unincorporated areas of the county and, for that
15purpose, may solicit bids and enter into service agreements to
16facilitate for those loads the sale and purchase of electricity
17and related services and equipment.
18    The corporate authorities, township board, or county board
19may also exercise such authority jointly with any other
20municipality, township, or county. Two or more municipalities,
21townships, or counties, or a combination of both, may initiate
22a process jointly to authorize aggregation by a majority vote
23of each particular municipality, township, or county as

 

 

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1required by this Section.
2    If the corporate authorities, township board, or the county
3board seek to operate the aggregation program as an opt-out
4program for residential and small commercial retail customers,
5then prior to the adoption of an ordinance with respect to
6aggregation of residential and small commercial retail
7electric loads, the corporate authorities of a municipality,
8the township board, or the county board of a county shall
9submit a referendum to its residents to determine whether or
10not the aggregation program shall operate as an opt-out program
11for residential and small commercial retail customers.
12    In addition to the notice and conduct requirements of the
13general election law, notice of the referendum shall state
14briefly the purpose of the referendum. The question of whether
15the corporate authorities, the township board, or the county
16board shall adopt an opt-out aggregation program for
17residential and small commercial retail customers shall be
18submitted to the electors of the municipality, township board,
19or county board at a regular election and approved by a
20majority of the electors voting on the question. The corporate
21authorities, township board, or county board must certify to
22the proper election authority, which must submit the question
23at an election in accordance with the Election Code.
24    The election authority must submit the question in
25substantially the following form:
26        Shall the (municipality, township, or county in which

 

 

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1    the question is being voted upon) have the authority to
2    arrange for the supply of electricity for its residential
3    and small commercial retail customers who have not opted
4    out of such program?
5The election authority must record the votes as "Yes" or "No".
6    If a majority of the electors voting on the question vote
7in the affirmative, then the corporate authorities, township
8board, or county board may implement an opt-out aggregation
9program for residential and small commercial retail customers.
10    A referendum must pass in each particular municipality,
11township, or county that is engaged in the aggregation program.
12If the referendum fails, then the corporate authorities,
13township board, or county board shall operate the aggregation
14program as an opt-in program for residential and small
15commercial retail customers.
16    An ordinance under this Section shall specify whether the
17aggregation will occur only with the prior consent of each
18person owning, occupying, controlling, or using an electric
19load center proposed to be aggregated. Nothing in this Section,
20however, authorizes the aggregation of electric loads that are
21served or authorized to be served by an electric cooperative as
22defined by and pursuant to the Electric Supplier Act or loads
23served by a municipality that owns and operates its own
24electric distribution system. No aggregation shall take effect
25unless approved by a majority of the members of the corporate
26authority, township board, or county board voting upon the

 

 

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1ordinance.
2    A governmental aggregator under this Section is not a
3public utility or an alternative retail electric supplier.
4    For purposes of this Section, "township" means the portion
5of a township that is an unincorporated portion of a county
6that is not otherwise a part of a municipality. In addition to
7such other limitations as are included in this Section, a
8township board shall only have authority to aggregate
9residential and small commercial customer loads in accordance
10with this Section if the county board of the county in which
11the township is located (i) is not also submitting a referendum
12to its residents at the same general election that the township
13board proposes to submit a referendum under this subsection
14(a), (ii) has not received authorization through passage of a
15referendum to operate an opt-out aggregation program for
16residential and small commercial retail customers under this
17subsection (a), and (iii) has not otherwise enacted an
18ordinance under this subsection (a) authorizing the operation
19of an opt-in aggregation program for residential and small
20commercial retail customers as described in this Section.
21    (b) Upon the applicable requisite authority under this
22Section, the corporate authorities, the township board, or the
23county board, with assistance from the Illinois Power Agency,
24shall develop a plan of operation and governance for the
25aggregation program so authorized. Before adopting a plan under
26this Section, the corporate authorities, township board, or

 

 

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1county board shall hold at least 2 public hearings on the plan.
2Before the first hearing, the corporate authorities, township
3board, or county board shall publish notice of the hearings
4once a week for 2 consecutive weeks in a newspaper of general
5circulation in the jurisdiction. The notice shall summarize the
6plan and state the date, time, and location of each hearing.
7Any load aggregation plan established pursuant to this Section
8shall:
9        (1) provide for universal access to all applicable
10    residential customers and equitable treatment of
11    applicable residential customers;
12        (2) describe demand management and energy efficiency
13    services to be provided to each class of customers; and
14        (3) meet any requirements established by law
15    concerning aggregated service offered pursuant to this
16    Section.
17    (c) The process for soliciting bids for electricity and
18other related services and awarding proposed agreements for the
19purchase of electricity and other related services shall be
20conducted in the following order:
21        (1) The corporate authorities, township board, or
22    county board may solicit bids for electricity and other
23    related services.
24        (1.5) A township board shall request from the electric
25    utility those residential and small commercial customers
26    within their aggregate area either by zip code or zip codes

 

 

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1    or other means as determined by the electric utility. The
2    electric utility shall then provide to the township board
3    the residential and small commercial customers, including
4    the names and addresses of residential and small commercial
5    customers, electronically. The township board shall be
6    responsible for authenticating the residential and small
7    commercial customers contained in this listing and
8    providing edits of the data to affirm, add, or delete the
9    residential and small commercial customers located within
10    its jurisdiction. The township board shall provide the
11    edited list to the electric utility in an electronic format
12    or other means selected by the electric utility and certify
13    that the information is accurate.
14        (2) Notwithstanding Section 16-122 of the Public
15    Utilities Act and Section 2HH of the Consumer Fraud and
16    Deceptive Business Practices Act, an electric utility that
17    provides residential and small commercial retail electric
18    service in the aggregate area must, upon request of the
19    corporate authorities, township board, or the county board
20    in the aggregate area, submit to the requesting party, in
21    an electronic format, those account numbers, names, and
22    addresses of residential and small commercial retail
23    customers in the aggregate area that are reflected in the
24    electric utility's records at the time of the request;
25    provided, however, that any township board has first
26    provided an accurate customer list to the electric utility

 

 

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1    as provided for herein.
2    Any corporate authority, township board, or county board
3receiving customer information from an electric utility shall
4be subject to the limitations on the disclosure of the
5information described in Section 16-122 of the Public Utilities
6Act and Section 2HH of the Consumer Fraud and Deceptive
7Business Practices Act, and an electric utility shall not be
8held liable for any claims arising out of the provision of
9information pursuant to this item (2).
10    (d) If the corporate authorities, township board, or county
11board operate under an opt-in program for residential and small
12commercial retail customers, then the corporate authorities,
13township board, or county board shall comply with all of the
14following:
15        (1) Within 60 days after receiving the bids, the
16    corporate authorities, township board, or county board
17    shall allow residential and small commercial retail
18    customers to commit to the terms and conditions of a bid
19    that has been selected by the corporate authorities,
20    township board, or county board.
21        (2) If (A) the corporate authorities, township board,
22    or county board award proposed agreements for the purchase
23    of electricity and other related services and (B) an
24    agreement is reached between the corporate authorities,
25    township board, or county board for those services, then
26    customers committed to the terms and conditions according

 

 

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1    to item (1) of this subsection (d) shall be committed to
2    the agreement.
3    (e) If the corporate authorities, township board, or county
4board operate as an opt-out program for residential and small
5commercial retail customers, then it shall be the duty of the
6aggregated entity to fully inform residential and small
7commercial retail customers in advance that they have the right
8to opt out of the aggregation program. The disclosure shall
9prominently state all charges to be made and shall include full
10disclosure of the cost to obtain service pursuant to Section
1116-103 of the Public Utilities Act, how to access it, and the
12fact that it is available to them without penalty, if they are
13currently receiving service under that Section. The Illinois
14Power Agency shall furnish, without charge, to any citizen a
15list of all supply options available to them in a format that
16allows comparison of prices and products.
17    (f) Any person or entity retained by a municipality or
18county, or jointly by more than one such unit of local
19government, to provide input, guidance, or advice in the
20selection of an electricity supplier for an aggregation program
21shall disclose in writing to the involved units of local
22government the nature of any relationship through which the
23person or entity may receive, either directly or indirectly,
24commissions or other remuneration as a result of the selection
25of any particular electricity supplier. The written disclosure
26must be made prior to formal approval by the involved units of

 

 

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1local government of any professional services agreement with
2the person or entity, or no later than October 1, 2012 with
3respect to any such professional services agreement entered
4into prior to the effective date of this amendatory Act of the
597th General Assembly. The disclosure shall cover all direct
6and indirect relationships through which commissions or
7remuneration may result, including the pooling of commissions
8or remuneration among multiple persons or entities, and shall
9identify all involved electricity suppliers. The disclosure
10requirements in this subsection (f) are to be liberally
11construed to ensure that the nature of financial interests are
12fully revealed, and these disclosure requirements shall apply
13regardless of whether the involved person or entity is licensed
14under Section 16-115C of the Public Utilities Act. Any person
15or entity that fails to make the disclosure required under this
16subsection (f) is liable to the involved units of local
17government in an amount equal to all compensation paid to such
18person or entity by the units of local government for the
19input, guidance, or advice in the selection of an electricity
20supplier, plus reasonable attorneys fees and court costs
21incurred by the units of local government in connection with
22obtaining such amount.
23    (g) The Illinois Power Agency shall provide assistance to
24municipalities, townships, counties, or associations working
25with municipalities to help complete the plan and bidding
26process.

 

 

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1    (h) This Section does not prohibit municipalities or
2counties from entering into an intergovernmental agreement to
3aggregate residential and small commercial retail electric
4loads.
5(Source: P.A. 96-176, eff. 1-1-10; 97-338, eff. 8-12-11;
697-823, eff. 7-18-12; 97-1067, eff. 8-24-12; revised 9-20-12.)